Doubling net result in H at comfortable capital ratios

Transcription

1 Doubling net result in H1 at comfortable capital ratios Bank of America Merrill Lynch 20th Annual Banking, Insurance & Diversified Financials CEO Conference Martin Blessing CEO London 30 September

2 Commerzbank today with sound and robust Germany based business model 2013 H1 PC turnaround profit more than doubled vs. H MSB growth story loan volume increased by 13% since 2013 more profitable 40% increase of operating result in Core Bank vs. H Milestones since 2012 mbank innovation leader in in Poland ~800k net new customers Client focussed IB reliable revenue stream delivering RoE level of of ~16% Exposure in in NCA halved only 27bn left in in CRE and Ship Finance Expenses under firm control stable development despite headwinds from regulatory Repayment Successful Settlement silent AQR / U.S. stress test litigation participations comfortable capitalisation 10.5% high derisking 47bn CET1 fully phased-in increased ~300 bps run down in CRE and Ship Finance Martin Blessing CEO London 30 September 1

3 Operating Core Bank segments with increased results Private Customers (in m) +88% Mittelstandsbank (in m) +10% % % FY 2013 FY H1 H1 FY 2013 FY H1 H1 Central & Eastern Europe (in m) Corporates & Markets (in m) % % % % 486 FY 2013 FY H1 H1 FY 2013 FY H1 H1 Martin Blessing CEO London 30 September 2

4 PC turnaround achieved well positioned for future challenges Selective turnaround drivers Net new customers (in k) Market share in new mortgage finance (in %) Volume share of premium & managed accounts (in %) Positioning as fair and competent H1 Open architecture for mortgage business New business model for securities H H1 Upcoming success drivers How to grow at stable revenue pools Simple and transparent (digital) product offerings that allow for customisation Leveraging on smart data towards effective 1 to 1 marketing Fast and customer driven digital innovations AND effective high quality personal advice Martin Blessing CEO London 30 September 3

5 Digitisation in our PC business is already reality with increasing dynamics More than 1.5 million banking app downloads About 3 million online banking customers Already 13% of current account openings purely online All basic products available online Coming soon: Chat / Video Chat 1 1 Launch date: 26 October Martin Blessing CEO London 30 September 4

6 We are the long term strategic partner to the German Mittelstand at home and abroad Leading market position Topics on the agenda Unrivalled regional coverage in Germany 150 locations: high proximity to typical German Mittelstand 13% loan growth since YE 2012 Worldwide relationship model Global reach with some 70 locations in more than 50 countries 17% of Eurozone export LoC channelled through our books Full customised product range Full range of corporate banking and capital market products More than 50% of C&M clientrevenues stem from MSB clients What to expect in German corporate banking going forward Strong and long lasting relationship with German Mittelstand remains key success factor Limited lending demand of cash rich Mittelstand in robust German economy - LLP level benefits Digitisation enters corporate banking and creates new opportunities Martin Blessing CEO London 30 September 5

7 Digitisation enters Corporate Banking: Online and Mobile New online portal for corporate customers Evolved user experience: Go-Live of the new online portals for corporate customers and financial institutions in different languages Consistent range of functions: established applications enhanced with extended functionalities set in a consistent portal frame MSB Cash Management App Mobile App for the realtime retrieval of bookings including third-party banks Overview of up to 15 accounts Already more than 5,000 downloads since Go- Live (on March 30th, ) with very good customer ratings Martin Blessing CEO London 30 September 6

8 NCA with significant asset run-down of 47bn in CRE and Ship Finance Highlights on NCA run-down since year end 2012 With remaining Exposure at Default of 27bn in CRE and Ship Finance already significantly below original target of 36bn for Significant net capital relief due to the value preserving run-down strategy. NPLs more than halved to 5.3bn and NPL ratio reduced from 8.1% to 7.1%. EaD in Ship Finance reduced from ~ 20bn down to less than 11bn, coverage ratio excluding collateral improved from 33% to 58%. Higher risk cluster in CRE almost completely eliminated from 10.6bn down to 0.4bn. Adequate asset valuation proven by several portfolio sales. Target 2016: 20bn of EaD in CRE and Ship Finance at an unchanged cumulated operating loss guidance of ~ 3bn Martin Blessing CEO London 30 September 7

9 Comfortable Capital Ratios CET1 B3 (fully phased-in) (in bn) CET1 ratio B3 (fully phased-in) (in %) Leverage ratio (fully phased-in) (in %) 2) ) 4.0 1) H H H1 1) Includes net profit of H1 excl. dividend accrual 2) According to revised CRD4/CRR rules published 10 Oct Martin Blessing CEO London 30 September 8

10 Strong Group operating result of 1,070m in H1 LLPs significantly down Revenues increased in all Core Bank divisions Revenues before LLP (in bn) Loan loss provisions (in bn) Costs (in bn) H H H1 Core Bank NCA Legal provisions for U.S. litigation EU bank levy of 167m Martin Blessing CEO London 30 September 9

11 Financial Outlook We will continue on our growth track in the Core Bank and aim to further grow revenues and market share by expanding our customer and asset base We expect Loan Loss Provisions of less than 1bn for with lower LLPs in NCA as well as in the Core Bank We expect expenses to be slightly above 7 billion Euros excluding European Bank levy CET1 of 10.5% comfortable level for our business model planning for a dividend and accruing accordingly Martin Blessing CEO London 30 September 10

12 The economic environment since 2012 has generated significant headwinds Bund yield curves April & August vs in % H1 Targets Year end 2012 Volume NCA (CRE & Ship Finance) 27 bn ~ 20 bn 1.0 August Basel 3 CET1 (fully phased-in) 10.5 % 1) > 10 % 0.5 CIR, Core Bank 69 % ~ 60 % April 0.0 RoE, Core Bank (post tax) n. a. 2) > 10 % y 2y 3y 4y 5y 6y 7y 8y 9y 10y Leverage Ratio (fully phased-in 3) ) 4.0 % 1) ~ 4 % Source: Deutsche Bundesbank, Bloomberg, Commerzbank 1) Includes net profit of H1 excl. dividend accrual 2) Post tax RoE for the Core Bank is not reported on a quarterly basis. Operating RoE Core Bank in H1 : 13.5%; Op. RoTE Core Bank: 15.8% 3) Leverage Ratio-Exposure according to revised CRD4/CRR rules published 10 Oct Martin Blessing CEO London 30 September 11

13 Appendix Martin Blessing CEO London 30 September 12

14 Commerzbank financials at a glance Group H1 H1 Operating result ( m) ,070 Net result ( m) ) CET 1 ratio B3 phase-in (%) ) CET 1 ratio B3 fully phased-in (%) ) Total assets ( bn) RWA B3 fully phased-in ( bn) Leverage ratio (fully phased-in revised rules) (%) Cost/income ratio (%) RoE of net result (%) ) Net RoTE (%) ) Core Bank (incl. O&C) H1 H1 Operating result ( m) ,412 Op. RoE (%) Op. RoTE (%) CIR (%) NCA H1 H1 Operating result ( m) EaD incl. NPL volume - CRE and Ship Finance ( bn) ) 1) Attributable to Commerzbank shareholders 2) Includes net profit of H1 excl. dividend accrual Martin Blessing CEO London 30 September 13

15 Summary Good operating result of 385m leads to 1.070m in H1 and a net result of 646m more than doubled compared to H1 ( 300m) Core Bank revenues in with increase of 8% y-o-y in H1 increase of % with all divisions above despite low interest rate environment NCA with further organic run down of 1.0bn (6%) in CRE and 1.8bn (%) in Ship Finance including 0.4bn due to FX effects (EUR/USD) Positive run down and capital effects of the signed 2.9bn CRE portfolio and ship restructuring platform sales will be reflected in Q3, while negative P&L effect of 98m already digested in Group LLPs of 280m Expenses of 1.753m affected by ongoing investments for strategic and regulatory purposes as well as by FX-effects from weaker Euro CET1 fully phased-in at comfortable level of 10.5% Leverage ratio reached target of 4.0% dividend accrual of 10ct per share as of H1 Martin Blessing CEO London 30 September

16 Operating result by segment in m Private Customers Mittelstandsbank Central & Eastern Europe Q3 Q Q3 Q Q3 Q Corporates & Markets Others & Consolidation Non-Core Assets Q3 Q Q3-588 Q Q3 Q Martin Blessing CEO London 30 September 15

17 Core Bank: LLP still at a low level default portfolio further reduced LLP split m -28% Default volume and coverage m Addition to provisions Releases >100% PC MSB CEE C&M O&C Default volume LLP Collaterals GLLP Cov. ratio (%) NPL ratio (%) 1) 5,743 4,937 2,970 1, ,532 4,918 2,771 1, ,087 4,522 2,690 1, Highlights Low LLPs in based on good portfolio quality and robust German economy Default portfolio further reduced at already low level NPL ratio of 1.4% reached lowest level ever 1) As % of EaD Martin Blessing CEO London 30 September 16

18 NCA with significant asset run-down of 47bn in CRE and Ship Finance Q Lower risk Medium risk Higher risk NPL bn 8 3 CRE 11 55bn 28-71% <1 16bn 4 9 Ship Finance 1) bn bn % 11bn Target 2016 due to value preserving run down: 20bn Public Finance bn Less liquid assets 23 77bn 54 Mainly liquid assets -38% Less liquid assets 19 48bn 29 Mainly liquid assets Remaining EaD 2016 based on maturity profile: 43bn Note: Numbers may not add up due to rounding 1) Deutsche Schiffsbank Martin Blessing CEO London 30 September 17

19 CRE/Ship Finance: Exposure further reduced by 1.0bn in CRE and 1.8bn in Ship Finance LLP split m Ship Finance CRE >100% % Further organic run down of 1.0bn (6%) in CRE and 1.8bn (%) in Ship Finance including 0.4bn due to FX LLPs in CRE almost completely driven by CRE portfolio sales ( 51m) Further significant reduction of EaD and NPL ratio expected in Q3 after full consideration of CRE portfolio sales -72 EaD incl. default volume bn Default volume and coverage 2) m Ship Finance CRE % -10% Default volume LLP Collaterals GLLP 7,174 7,406 2,255 4, ,576 5,859 2,6 4, ,326 5,590 1,788 3, Cov. ratio (%) NPL ratio (%) 1) Note: Numbers may not add up due to rounding 1) As % of EaD 2) Incl. CRE, Ship Finance and Public Finance Martin Blessing CEO London 30 September 18

20 NCA: Diversified portfolio EaD (incl. NPL) per 30 June, in bn GER USA IT POR Other Sum Commercial Real Estate Performing NPL 2) EaD RWA Sum GER USA IT ES POR Other Sum Public Finance (incl. PFI 1) ) FI Sovereign 3) Others Rest NPL 2) EaD RWA Sum Ship Finance (incl. CR Warehouse) Performing NPL 2) Sum Container Tanker Bulker Other Sum EaD RWA Note: Numbers may not add up due to rounding 1) Utility and infrastructure transactions (mostly UK) taken over from PRU in mid-2012; without value-impairing securities 2) Claims in the category LaR Loans; 3) Incl. regions Martin Blessing CEO London 30 September 19

21 NCA: Reduced exposures in all risk clusters Cluster Commercial Real Estate 1) EaD in bn /15 Q4/ /15 Q4/ Ship Finance EaD in bn Bulk Carrier (Capesize/VLOC) 0.8 higher risk Hungary 0.2 Others (3%) 0.6 (4%) Container < 2,000 TEU Container 2,000 4,000 TEU Product-/Chemical Tanker (27%) 2.5 (27%) medium risk Italy Portugal USA Others (29%) 3.8 (23%) Bulk Carrier (Handysize/-max) Bulk Carrier Panamax Container 4,000 8,000 TEU Crude Oil Tanker (36%) 3.3 (36%) lower risk Germany France Poland Others (68%) 12.3 (73%) Container > 8,000 TEU Gas Tanker Yards Other (Cruise, Car Carrier, Offshore, Other) < (37%) 3.4 (37%) Note: Numbers may not add up due to rounding 1) Incl. HF Retail portfolio of NCA Martin Blessing CEO London 30 September 20

22 Default portfolios CRE and Ship Finance as of 30 June 30 June (31 Dec ) 31 Dec 2013 Default portfolio CRE by country m Total Germany US Total Default volume 3,287 (3,335) 1,870 (1,796) 316 (283) 5,662 Loan loss provisions 807 (900) 392 (508) 62 (59) 1,882 GLLP 79 (80) 21 (1) 6 (0) 119 Coverage ratio incl. GLLP excl. collaterals (%) 27 (29) 22 (28) 21 (21) 35 Collaterals 2,458 (2,523) 1,480 (1,373) 247 (224) 3,847 Coverage ratio incl. GLLP and collaterals (%) 102 (105) 101 (105) 100 (100) 103 NPL ratio (%) 20.0 (16.7) 21.2 (15.6) 74.3 (73.6) June (31 Dec ) 31 Dec 2013 Default portfolio Ship Fin. by ship type m Total Container Tanker Bulker Total Default volume 2,033 (2,893) 761 (1,534) 272 (609) 386 (311) 3,871 Loan loss provisions 981 (1,296) 354 (777) 70 (192) 186 (133) 1,291 GLLP 208 (224) 88 (133) 15 (46) 43 (30) 281 Coverage ratio incl. GLLP excl. collaterals (%) 58 (53) 58 (59) 31 (39) 59 (53) 41 Collaterals 1,053 (1,549) 355 (697) 232 (384) 220 (218) 2,252 Coverage ratio incl. GLLP and collaterals (%) 110 (106) 105 (105) 117 (102) 116 (123) 99 NPL ratio (%) 18.8 (24.0) 19.1 (31.4).7 (20.0) 17.3 (13.5) 27.0 Martin Blessing CEO London 30 September 21

23 RWA decrease due to NCA asset run down and slightly recovered Euro RWA (B3 fully phased-in) development and segmental split bn Operational Risk Market Risk Credit Risk NCA NCA Core Bank Core Bank Highlights Decreasing credit risk ( 4.6bn) due to proceeding reduction of the loan portfolio within the NCA segment and changes of FX-rates in particular USD Diminished market risk ( 2.1bn) due to consideration of hedge positions for credit spreads Operational risk stable at group level Note: Numbers may not add up due to rounding Martin Blessing CEO London 30 September 22

24 CET1 ratio fully phased-in of 10.5% including dividend accrual Regulatory capital (CET1 B3 fully phased-in) transition m 9.4% 9.5% 10.5% 2) Regulatory Capital Highlights Regulatory Capital Capital Increase (ABB) April Net profit Dividend accrual Actuarial gains/losses Currency translation reserve Successful capital increase in April has generated 1.4bn additional CET1 capital Dividend accrual of 125m / 10ct per share for H1 Positive effect of 0.4bn in pension liabilities due to higher discount rates Revaluation reserve with decrease of 0.2bn due to widening of sovereign credit spreads while slightly recovered Euro reduces currency translation reserve by 0.1bn Note: Numbers may not add up due to rounding 1) Includes mainly DTA, shortfall and prudential valuation 2) Includes H1-profit Revaluation reserve Regulatory Capital 2) Martin Blessing CEO London 30 September 23 Others 1)

25 Key figures of Commerzbank share Figures per share in Operating result EPS (incl. restructuring expenses) Earnings per share in 1) 3) ) Q3 Q4 Q3 Q4 FY 2013 FY 6M Dec Dec 30 Jun Number of shares issued (m) 1, , ,252.4 Average number of shares outstanding (m) , ,171.0 Market capitalisation ( bn) Net asset value per share ( ) Low/high Xetra intraday prices ytd (in ) 5.56/ / / ) Result for the quarter on accumulative basis 2) After reverse stock split 10:1 3) After restatements of hedge accounting and credit protection insurance Martin Blessing CEO London 30 September 24

26 Current Commerzbank Bank- und Pfandbrief Ratings Current Commerzbank Ratings Bank Ratings Counterparty Risk Assessment - A3 - Bank Deposit Rating n.a. Baa1 positive n.a. Issuer Rating BBB+ negative Baa1 stable Financial Strength (standalone) Pfandbrief Ratings bbb ba1 Public Sector Pfandbriefe - Aaa Mortgage Pfandbriefe - Aaa BBB positive bbb AAA stable AAA stable Changes in Bank Ratings: Fitch, 19/5/: Issuer Rating downgraded to BBB (from A+ ) with positive Outlook (before negative) S&P, 9/6/: Issuer Rating downgraded to BBB+ (before A- ), stand-alone Rating upgraded to bbb (before bbb- ) Moody s, 19/6/: Issuer Rating confirmed with Baa1, Outlook stable (before negative). Launch of Bank Deposit Rating Baa1 with positive Outlook and Counterparty Risk Assessment of A3 No changes in Pfandbrief Ratings Martin Blessing CEO London 30 September 25

27 Commerzbank Group in m H1 Q3 Q4 FY H1 Total Revenues 2,260 2,241 4,501 2,406 1,847 8,754 2,782 2,418 5,200 o/w Total net interest and net trading income 1,538 1,426 2,964 1,595 1,441 6,000 2,017 1,509 3,526 o/w Net commission income , , ,739 o/w Other income Provision for possible loan losses , Operating expenses 1,698 1,727 3,425 1,722 1,779 6,926 1,939 1,753 3,692 o/w European bank levy Operating profit ,070 Impairments on goodw ill Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit ,004 Average capital employed 27,077 27,285 27,181 27,454 27,372 27,297 27,524 29,372 28,448 RWA credit risk fully phased in (end of period) 173, , , , , , , , ,399 RWA market risk fully phased in (end of period) 20,117 22,461 22,461 20,013 20,055 20,055 22,471 20,368 20,368 RWA operational risk fully phased in (end of period) 25,073 23,534 23,534 22,683 21,560 21,560 23,053 22,655 22,655 RWA fully phased in (end of period) 218, , ,013 2,707 2,072 2, ,547 2,422 2,422 Cost/income ratio (%) 75.1% 77.1% 76.1% 71.6% 96.3% 79.1% 69.7% 72.5% 71.0% Operating return on equity (%) 4.8% 3.8% 4.3% 5.0% -3.5% 2.5% 10.0% 5.2% 7.5% Operating return on tangible equity (%) 5.4% 4.2% 4.8% 5.6% -3.9% 2.8% 11.2% 5.9% 8.4% Return on equity of net result (%) 3.1% 1.5% 2.3% 3.4% -3.9% 1.0% 5.5% 3.9% 4.7% Net return on tangible equity (%) 3.4% 1.7% 2.5% 3.8% -4.4% 1.1% 6.2% 4.4% 5.2% Martin Blessing CEO London 30 September 26

28 Core Bank in m H1 Q3 Q4 FY H1 Total Revenues 2,219 2,281 4,500 2,330 1,756 8,586 2,666 2,456 5,122 o/w Total net interest and net trading income 1,419 1,501 2,920 1,509 1,357 5,786 1,711 1,502 3,213 o/w Net commission income , , ,728 o/w Other income Provision for possible loan losses Operating expenses 1,617 1,646 3,263 1,645 1,709 6,617 1,834 1,677 3,511 o/w European bank levy Operating profit , ,412 Impairments on goodw ill Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit , ,362 Average capital employed 18,563 18,601 18,582 19,767 19,882 19,203 19,965 21,989 20,977 RWA credit risk fully phased in (end of period) 122, , , , , , , , ,818 RWA market risk fully phased in (end of period),987 15,534 15,534 15,560 15,244 15,244 17,958 16,850 16,850 RWA operational risk fully phased in (end of period) 23,670 22,268 22,268 21,419 20,297 20,297 21,103 20,589 20,589 RWA fully phased in (end of period) 161, , , , , , , , ,257 Cost/income ratio (%) 72.9% 72.2% 72.5% 70.6% 97.3% 77.1% 68.8% 68.3% 68.5% Operating return on equity (%) 10.7% 9.5% 10.1% 12.0% -1.1% 7.7% 15.4% 11.7% 13.5% Operating return on tangible equity (%) 12.8% 11.3% 12.0%.2% -1.3% 9.1% 18.2% 13.6% 15.8% Martin Blessing CEO London 30 September 27

29 Private Customers in m H1 Q3 Q4 FY H1 Total Revenues , , ,829 o/w Total net interest and net trading income , o/w Net commission income , o/w Other income Provision for possible loan losses Operating expenses , , ,463 o/w European bank levy Operating profit Impairments on goodw ill Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit Average capital employed 4,266 4,332 4,299 4,217 4,151 4,241 4,4 3,953 4,049 RWA credit risk fully phased in (end of period) 17,655 18,475 18,475 17,842 18,353 18,353 18,425 18,579 18,579 RWA market risk fully phased in (end of period) RWA operational risk fully phased in (end of period) 10,747 10,459 10,459 9,740 9,033 9,033 6,899 6,604 6,604 RWA fully phased in (end of period) 28,485 29,023 29,023 27,675 27,843 27,843 26,051 25,981 25,981 Cost/income ratio (%) 83.2% 84.4% 83.8% 84.4% 90.0% 85.5% 81.0% 79.0% 80.0% Operating return on equity (%) 10.4% 10.7% 10.6% 11.3% 6.9% 9.9% 15.5% 17.3% 16.4% Operating return on tangible equity (%).9% 15.2% 15.1% 16.2% 10.0%.1% 22.4% 25.4% 23.9% Martin Blessing CEO London 30 September 28

30 Mittelstandsbank in m H1 Q3 Q4 FY H1 Total Revenues , , ,465 o/w Total net interest and net trading income , o/w Net commission income , o/w Other income Provision for possible loan losses Operating expenses , o/w European bank levy Operating profit , Impairments on goodw ill Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit , Average capital employed 7,335 7,545 7,440 7,638 7,953 7,618 8,191 8,094 8,2 RWA credit risk fully phased in (end of period) 58,085 62,284 62,284 63,955 66,789 66,789 66,600 64,535 64,535 RWA market risk fully phased in (end of period) ,206 1,169 1,169 RWA operational risk fully phased in (end of period) 3,917 3,512 3,512 3,352 3,301 3,301 3,845 3,495 3,495 RWA fully phased in (end of period) 62,877 66,579 66,579 68,215 70,918 70,918 71,651 69,199 69,199 Cost/income ratio (%) 44.8% 44.5% 44.7% 46.2% 50.6% 46.5% 50.4% 50.2% 50.3% Operating return on equity (%) 18.5%.3% 16.3% 19.1% 12.6% 16.1% 16.7%.5% 15.6% Operating return on tangible equity (%) 20.9% 16.0% 18.4% 21.4%.1% 18.0% 18.6% 16.2% 17.4% Martin Blessing CEO London 30 September 29

31 Central & Eastern Europe in m H1 Q3 Q4 FY H1 Total Revenues o/w Total net interest and net trading income o/w Net commission income o/w Other income Provision for possible loan losses Operating expenses o/w European bank levy Operating profit Impairments on goodw ill Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit Average capital employed 1,693 1,710 1,701 1,733 1,752 1,722 1,843 1,935 1,889 RWA credit risk fully phased in (end of period) 12,213 12,721 12,721 12,827 13,264 13,264,391,411,411 RWA market risk fully phased in (end of period) RWA operational risk fully phased in (end of period) RWA fully phased in (end of period) 13,160 13,507 13,507 13,840,109,109 15,709 15,675 15,675 Cost/income ratio (%) 46.9% 47.6% 47.3% 46.1% 48.4% 47.2% 45.3% 57.7% 50.9% Operating return on equity (%) 23.2% 19.6% 21.4% 21.5% 20.3% 21.1% 25.2% 13.2% 19.1% Operating return on tangible equity (%) 28.7% 24.3% 26.5% 26.6% 25.0% 26.1% 30.8% 16.0% 23.2% Martin Blessing CEO London 30 September 30

32 Corporates & Markets in m H1 Q3 Q4 FY H1 Total Revenues , , ,198 o/w Total net interest and net trading income , o/w Net commission income o/w Other income Provision for possible loan losses Operating expenses , o/w European bank levy Operating profit Impairments on goodw ill Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit Average capital employed 4,552 4,669 4,611 4,595 4,427 4,561 4,624 4,818 4,721 RWA credit risk fully phased in (end of period) 19,457 22,089 22,089 19,747 20,012 20,012 21,524 21,021 21,021 RWA market risk fully phased in (end of period) 10,372 11,275 11,275 11,732 10,897 10,897 11,920 11,585 11,585 RWA operational risk fully phased in (end of period) 5,922 5,088 5,088 5,011 4,684 4,684 5,717 5,602 5,602 RWA fully phased in (end of period) 35,752 38,453 38,453 36,490 35,593 35,593 39,161 38,208 38,208 Cost/income ratio (%) 62.1% 64.1% 63.1% 67.8% 82.2% 68.5% 61.9% 63.1% 62.4% Operating return on equity (%) 18.8% 15.9% 17.4% 13.6% 10.8%.8% 26.0% 15.4% 20.6% Operating return on tangible equity (%) 19.4% 16.5% 17.9%.0% 11.2% 15.3% 26.9% 15.9% 21.3% Martin Blessing CEO London 30 September 31

33 Non-Core Assets in m H1 Q3 Q4 FY H1 Total Revenues o/w Total net interest and net trading income o/w Net commission income o/w Other income Provision for possible loan losses Operating expenses o/w European bank levy Operating profit Impairments on goodw ill Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit Average capital employed 8,5 8,684 8,599 7,687 7,490 8,094 7,559 7,383 7,471 RWA credit risk fully phased in (end of period) 50,374 44,119 44,119 41,199 38,6 38,6 39,034 35,580 35,580 RWA market risk fully phased in (end of period) 5,130 6,926 6,926 4,453 4,812 4,812 4,512 3,518 3,518 RWA operational risk fully phased in (end of period) 1,403 1,267 1,267 1,264 1,263 1,263 1,950 2,066 2,066 RWA fully phased in (end of period) 56,907 52,312 52,312 46,916 44,688 44,688 45,497 41,164 41,164 Operating return on equity (%) -8.2% -8.5% -8.3% -13.1% -9.8% -9.8% -4.6% -13.9% -9.2% Operating return on tangible equity (%) -8.2% -8.5% -8.4% -13.1% -9.8% -9.8% -4.6% -13.9% -9.2% Martin Blessing CEO London 30 September 32

34 Others & Consolidation in m H1 Q3 Q4 FY H1 Total Revenues o/w Total net interest and net trading income o/w Net commission income o/w Other income Provision for possible loan losses Operating expenses o/w European bank levy Operating profit , Impairments on goodw ill Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit , Average capital employed ,585 1,599 1,061 1,164 3,189 2,176 RWA credit risk fully phased in (end of period) 15,285 11,330 11,330 16,440 15,424 15,424 16,049 17,273 17,273 RWA market risk fully phased in (end of period) 3,244 2,986 2,986 2,229 2,601 2,601 3,547 2,815 2,815 RWA operational risk fully phased in (end of period) 2,551 2,823 2,823 2,900 2,895 2,895 3,882 4,107 4,107 RWA fully phased in (end of period) 21,079 17,139 17,139 21,570 20,920 20,920 23,478 24,195 24,195 Martin Blessing CEO London 30 September 33

35 Group equity composition Capital Capital Capital End of period End of period Average bn bn bn Common equity tier 1 B3 capital (phase in) ) Transition adjustments ) CET1 ratio phase-in: 12.4% Common equity tier 1 B3 capital (fully phased-in) ) Op. RoCET: 6.8% CET1 ratio fully phased-in: 10.5% DTA Deductions on securitizations Deductions related to non-controlling interests IRB shortfall Other regulatory adjustments Tangible equity ) Op. RoTE: 5.9% 4) Goodwill and intangible assets Pre-tax RoE: 5.2% IFRS capital ) Op. RoE: 5.2% Subscribed capital Capital reserve Retained earnings ),4) Currency translation reserve Revaluation reserve Cash flow hedges Consolidated P&L ) IFRS capital without non-controlling interests ) RoE on net result: 3.9% Non-controlling interests (IFRS) RoTE on net result: 4.4% 4) Note: Numbers may not add up due to rounding 1) Include mainly AT1 positions and phase-in impacts 2) Excluding consolidated P&L 3) Includes net profit of H1 4) Excl dividend accrual Martin Blessing CEO London 30 September 34

36 Glossary - Capital Allocation / RoE & RoTE Calculation Capital Allocation Amount of average capital allocated to business segments is calculated by multiplying the segments current YTD average Basel 3 RWA (phase-in) (PC 27.0bn, MSB 70.6bn, CEE 15.1bn, C&M 38.2bn, O&C 23.8bn, NCA 44.8bn) by a ratio of 10% - reflecting current regulatory and market standard figures for have been restated In addition average regulatory capital deductions are allocated attributable to business segments which results in increased average capital per segment (PC 1.3bn, MSB 1.1bn, CEE 0.4bn, C&M 0.9bn, O&C -0.6bn, NCA 0.5bn) Excess capital is allocated to Others & Consolidation Since 2.5bn EBA Capital Buffer (originally 4bn) still assigned to NCA Goodwill as per B3 fully phased-in (average) of the segments amount to: PC 1.1bn, MSB 0.6bn, CEE 0.2bn, C&M 0.2bn Other Intangibles as per B3 fully phased-in (average) of the segments amount to: PC 0.2bn, MSB 0.2bn, CEE 0.1bn, O&C 0.5bn Capital allocation is disclosed in the business segment reporting of Commerzbank Group RoE & RoTE Calculation RoE is calculated on an average level of IFRS capital RoTE is calculated on an average level of IRFS capital after deduction of goodwill and other intangible assets RoTE calculation represents the current market standard RoCET1 is calculated on average B3 CET1 capital fully phased-in Martin Blessing CEO London 30 September 35

37 Notes Martin Blessing CEO London 30 September 36

38 Disclaimer Investor Relations This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include, inter alia, statements about Commerzbank s beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates, projections and targets as they are currently available to the management of Commerzbank. Forward-looking statements therefore speak only as of the date they are made, and Commerzbank undertakes no obligation to update any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, among others, the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which Commerzbank derives a substantial portion of its revenues and in which it hold a substantial portion of its assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives and the reliability of its risk management policies. In addition, this presentation contains financial and other information which has been derived from publicly available information disclosed by persons other than Commerzbank ( external data ). In particular, external data has been derived from industry and customer-related data and other calculations taken or derived from industry reports published by third parties, market research reports and commercial publications. Commercial publications generally state that the information they contain has originated from sources assumed to be reliable, but that the accuracy and completeness of such information is not guaranteed and that the calculations contained therein are based on a series of assumptions. The external data has not been independently verified by Commerzbank. Therefore, Commerzbank cannot assume any responsibility for the accuracy of the external data taken or derived from public sources. Copies of this document are available upon request or can be downloaded from Martin Blessing CEO London 30 September 37

39 For more information, please contact Commerzbank s IR team: Tanja Birkholz (Head of Investor Relations / Executive Management Board Member) P: M: tanja.birkholz@commerzbank.com Christoph Wortig (Head of IR Communications) P: M: christoph.wortig@commerzbank.com Institutional Investors and Financial Analysts Michael H. Klein P: M: michael.klein@commerzbank.com Maximilian Bicker P: M: maximilian.bicker@commerzbank.com Retail Investors Florian Neumann P: M: florian.neumann@commerzbank.com Simone Nuxoll P: M: simone.nuxoll@commerzbank.com Dirk Bartsch (Head of Strategic IR / Rating Agency Relations) P: M: dirk.bartsch@commerzbank.com ir@commerzbank.com Martin Blessing CEO London 30 September 38